Uphold Cut Ties with Cred?: What Happened to CredEarn

in hive-175254 •  3 months ago 


This image is from an email that I received today, but their website doesn't say anything else.
Business as usual...

It looks like nothing ever happend, but they filed bankruptcy and I heard all the assets are frozen.
I thought about doing Cred so many time. I think I signed up for it long time ago because CredEarn was part of Uphold or something?
But I never used it... fortunately.

Here is the entire email

Thank you for your outsized patience over the past two weeks. During this time, our burning desire to communicate with you conflicted with our legal obligation to remain silent until we could arrive at a clear understanding of next steps. We know this period has been concerning and stressful for you, and it has been difficult for all of us at Cred that we could not communicate more. We have been working around the clock in discussion with many parties, including insurance providers, investors, restructuring specialists, and legal counsel to understand how Cred has been impacted from recent events and what it means for you. We have come to the conclusion that it is in the best interest of our customers and all stakeholders for Cred to file for Chapter 11 of the US Bankruptcy Code.

Why Chapter 11 Bankruptcy? We can operate this process according to three principles that you deserve:

Transparency. You will have full and continuous access to every disclosure about Cred, its history, and the recent events leading to our decision to file for Chapter 11 bankruptcy. Everyone will have the same information, and you can access all information here, by phone (1-877-739-9988), or by email ([email protected]). The self-serve portal will provide you with a frequently asked questions section, and give you a deeper understanding of the process. It will be updated with new information regularly and you can sign up to receive email alerts.

Fairness. In a bankruptcy proceeding, every customer will have the opportunity to participate in the process. There are no special deals that would favor one customer over another, and you will have an opportunity to review all documentation.

Efficiency. Chapter 11 has a well-established set of processes, and we expect to come to a resolution within a few months.

As we work through a comprehensive plan to recover assets, we will be evaluating several options, including sale of the company or company assets, restructuring, and liquidation of assets. To that end, we have added Grant Lyon to Cred’s Board of Directors to oversee the restructuring process. Grant has more than 30 years of experience in corporate restructuring, and I have great confidence in his fair and objective analysis of company operations, development of strategic plans, and liquidity alternatives that serve the best interests of Cred stakeholders. Cred has also engaged Paul Hastings LLP as its legal advisor during the Chapter 11 process , and MACCO Restructuring Group as financial advisor to evaluate M&A and other restructuring opportunities.

On a personal note, my thoughts and deepest apologies to our community, those who were willing to take a risk on us - our partners, investors, employees, and customers - for the anxiety, stress, and concern we have caused you. Many Cred employees, including myself have significant amounts of money that have been entrusted with Cred. We are committed to do whatever we can to arrive at the most favorable outcome we can for all of our customers.

Dan Schatt
Co-Founder & CEO of Cred

I don't really understand the fairness or transparency because I have no idea what really happened and no explanation on their website. They tweeted about this couple times but still... what the hell happened?

Another thing I heard is that, they declared bankruptcy in Delaware which doesn't legally recognize cryptos or something. I don't know exactly what that means but they can save the company, not the customers assets???

I still remember when BlockFi got hacked... it was a very scary time, but they told us what happened and they were more "open" about what went wrong, and it was all over the crypto news.
I think what Cred is doing right now is wrong... hopefully, all the customers will get their money back at least.

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Saw your post on Blurt. I thought I'd Hunt it for https://steemhunt.com but it was already Hunted before.

Posted Using LeoFinance Beta

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Posted Using LeoFinance Beta

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Good article, one of the things that can happen to AIRTM and the truth is that I do not trust any project to use them for savings and not as a payment gateway is a madness in which thousands of people are.